16.04.2015 Views

Lawrence Lumber Company Inc. - Miller Publishing Corporation

Lawrence Lumber Company Inc. - Miller Publishing Corporation

Lawrence Lumber Company Inc. - Miller Publishing Corporation

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

December 2012/January 2013 Page 21<br />

FORECASTS - Herga<br />

Continued from page 4<br />

ness mode.<br />

Our major imported hardwood products<br />

rough sawn are Sapele/African<br />

Mahogany/Utile/Jatoba/Aniegre and<br />

FSC certified hardwood decking. These<br />

species have sold well for us. We specialize<br />

in importing 100% FSC certified<br />

hardwoods from our own sawmills in the<br />

Congo basin. We are importing into the<br />

USA and Canada. We are importing<br />

from West Africa (Congo basin) Ghana,<br />

Ivory Coast and most South American<br />

countries.<br />

Shipping issues are now an everyday<br />

occurrence. Problems vary from container<br />

inspections, demurrage to freight<br />

rates, bunker surcharges and availability<br />

of containers or lack of breakbulk<br />

service.<br />

Olam Wood Products through the Olam<br />

group owns its own sawmills in West<br />

Africa that are mainly FSC certified. With<br />

the uncertainty of some supply sources,<br />

we feel that certification and responsible<br />

forest management is the only path to<br />

future success in this business.<br />

•<br />

FORECASTS - McMaster<br />

Continued from page 4<br />

as a Challenging Global Supply causing<br />

more time and efforts to find quality and<br />

consistent suppliers.<br />

Argo Fine Imports specializes in importing<br />

hardwood plywood products from<br />

Indonesia, China, Africa, Brazil and<br />

Ecuador. Our products range from<br />

2.7mm to 28mm for various applications<br />

throughout our country delivering to<br />

wholesale distribution, OEM manufacturers<br />

and retail.<br />

Argo has continued with our model and<br />

(inventory) stock is based on market and<br />

programs in place.<br />

Shipping continues to be a challenge<br />

based on volume availability depending<br />

on shipping methods. <strong>Inc</strong>reased container<br />

rates have been a problem for<br />

most of 2012.<br />

Argo now offers all products that meet<br />

Carb Phase 2 requirements as long as<br />

they are FSC certified materials.<br />

Florcore Underlayment is a domestic<br />

green product that Argo has developed<br />

to diversify in these challenging times.<br />

•<br />

FORECASTS - Carlsson<br />

Continued from page 4<br />

Oak and Black Walnut. We expect 2012<br />

sales to meet or exceed 2011 and 2010,<br />

although every day is a new challenge,<br />

and we are taking nothing for granted for<br />

the balance of the year or for 2013.<br />

The sawmills that we do business with<br />

continue the challenge of purchasing<br />

White Oak logs at prices that make business<br />

sense. The mills compete with<br />

export log buyers (who are not just purchasing<br />

veneer logs - but also saw logs)<br />

and stave mills. I am writing this in early<br />

November, 2012, and many mills have<br />

low log and green/air drying inventory,<br />

which will affect the availability for the<br />

balance of 2012 and for the 1st quarter<br />

of 2013.<br />

Since the global economic recession,<br />

we have had to switch our focus and<br />

attention from Spain, Italy and other<br />

European markets to the Southeast Asia<br />

and China markets.<br />

In 2012, we increased our sales dramatically<br />

into Southeast Asia with some<br />

sales into China, and project this will<br />

continue 2013 onwards. Price vs. quality<br />

continues to be the ongoing battle in<br />

these markets.<br />

The challenges continue month-tomonth<br />

to keep updated on the intermodal<br />

ocean freight rates which seem to<br />

go up much, much faster than down. 40-<br />

foot container availabilities for reasonable<br />

rates is also an issue. We are<br />

sometimes forced to use higher ocean<br />

freight rates just to get equipment. It is a<br />

moving target.<br />

I guess if exporting was easy, everyone<br />

would be doing it.<br />

We are in a global economy in challenging<br />

times, but I expect that exporting<br />

of North American hardwoods will continue<br />

to increase in 2013. The prices of<br />

the species will be subject to supply and<br />

demand. I believe that many overseas<br />

buyers do not have much on the ground<br />

inventory, so they will continue utilizing<br />

the ʻjust in timeʼ purchasing policy.<br />

To summarize everyone needs to keep<br />

a careful eye on the ball, and stay very<br />

focused. Be careful. It is a jungle out<br />

there.<br />

FORECASTS - Burnett<br />

Continued from page 4<br />

improved prices and steady enquiries.<br />

The market has been up and down all<br />

year so we canʼt say that 2012 has been<br />

better for us than 2011.<br />

Challenges I see in 2013 include log<br />

decks remaining low and production low<br />

in the major species needed as demand<br />

begins to be steady.<br />

We export all species of domestic hardwoods<br />

and Poplar, White Oak and<br />

Basswood have been very steady.<br />

We primarily export to the UK, Ireland,<br />

Spain, Germany, China, Vietnam,<br />

Thailand, Indonesia and Malaysia. Our<br />

inventories are limited in the items needed<br />

due to lack of production.<br />

The issues with shipping we experience<br />

result from fluctuations in ocean freight<br />

rates, high inland freight rates due to<br />

fuel surcharges and potential uncertainty<br />

about the potential Longshoremanʼs<br />

strike.<br />

•<br />

Dan Lennon<br />

Robinson<br />

<strong>Lumber</strong><br />

New Orleans,<br />

La.<br />

Our forecast is for<br />

moderate growth<br />

based on stable<br />

exotic lumber<br />

prices, a substantial,<br />

well balanced<br />

inventory, as well<br />

as confidence<br />

about increasing activity in the home<br />

renovation market.<br />

The import market in 2012 was very<br />

similar to 2011. We had challenges with<br />

maintaining appropriate inventory levels<br />

due to both unpredictability of demand<br />

and extremely long transit times for most<br />

of our best selling imported lumber<br />

species.<br />

Freight costs continue to be a major<br />

challenge, both ocean freight and inland<br />

freight from our warehouses to our customers.<br />

We import rough lumber and solid<br />

hardwood flooring as well as some Ipe<br />

decking, Jatoba lumber and flooring.<br />

We export domestically produced hardwood<br />

and softwood lumber to several<br />

dozen countries in Europe, Asia and the<br />

Caribbean.<br />

We are buying more aggressively for<br />

inventory in 2013 after having cut back<br />

each of last four years.<br />

Our biggest problem is increasingly frequent<br />

U.S. Customs and USDA intensive<br />

inspections on containers of imported<br />

wood products. You get charged by<br />

Customs or USDA for drayage to a<br />

warehouse of their choice, the inspection<br />

itself, handling and storage plus<br />

demurrage during time of inspection<br />

charged by the shipping line. They take<br />

your packages apart and you have to<br />

pay someone to recoup them. We even<br />

had one case where we had to pay over<br />

$2,000 to have some mud rinsed off the<br />

outside of the container. It was handled<br />

as hazardous waste.<br />

We continue to strive to provide any<br />

service our customers require. We ship<br />

flooring samples to endusers for our<br />

customers every day. We ship job lot<br />

quantities when needed and handle all<br />

LTL arrangements. We are providing<br />

services such as width sorting hardwood<br />

lumber as well as customizing length tallies<br />

to best suit our manufacturer customers.<br />

•<br />

Continued on page 22

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!